FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Solve:
Principal: $6,500
Interest rate: 8%
Time (In time using exact interest) ?
Simple Interest; $1, 486.03
Expert Solution
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Step 1
Simple interest is the simplest method of computing interest on loans. It is quite quick and easier to determine interest using this when compared to the compounding methods or the concept of time value of money.
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